In case you do not know, a business’s location is integral in attracting your target customers. It can also impact your bottom line.
For example, setting up a shop in a prime location could mean a higher rental fee. This is something you should include in your overhead cost.
Your business location also has something to do with attracting and retaining employees. For one, it would be cost-effective for a person to look for employment nearby. Second, it reduces your need to deal with late and absences since your employees live nearby.
This explains why you should find the right location for your business.
As mentioned earlier, your business’s location can affect your brand awareness efforts, overhead cost, and employee retention. As such, you should consider these nine factors when selecting where you should set up shop:
First, you need to decide on your business location type. While there are five most common business locations, more creative options include co-working spaces. Be on the lookout for other location types that match your specific needs.
- Home-based business: If you’re working from home, you might need a bigger space for your operations. Hence, consider buying a bigger house or renting a commercial space nearby. Some home businesses, like selling baked goods, must have a commercial kitchen. Depending on your resources, you can choose to build one near your house or rent a commissary.
- Retail business: Don’t just limit yourself to strip malls or downtown storefronts. You can also look at other retail spaces in the area, such as special event kiosks, free-standing buildings, etc.
- Mobile business: With today’s mobile users, your food business can add a roaming food truck in your area, or your book store can open a pop-up shop nearby.
- Commercial business space: Commercial business spaces provide flexibility. However, your business shouldn’t rely on heavy consumer traffic.
- Industrial site: If you’re operating in the distribution or manufacturing business, then it’s likely that you have specific needs. Usually, industrial sites need ample warehouse space and access to major transportation routes. Your disposal needs and requirements are other things you need to consider.
When choosing the right business location, ask yourself if the operation will be formal or more casual in working? Do you want an online store or a more traditional physical store if you own a retail business?
This mindset needs to be consistent when choosing a business location as it helps your business style and image.
When looking for a location, one of the top priorities is whether it fits your company’s budget. However, it’s not all you need to look at when it comes to money.
There will be other location-specific costs that you need to consider beyond the monthly rent or the purchase price. Each location will have various hidden fees that you need to account for. This includes renovations, taxes, upgrades on utilities, minimum wage requirements, and so on.
Taking these hidden fees into consideration can help you make a well-informed decision when choosing a business location. It is also advisable that you talk with other business owners in the area. Ask whether they are happy with their site. That way, you’d know whether you can set up shop in the area.
While you can’t predict whether a new location will be successful or not, you can do your research beforehand. This ensures that it’s the best fit for your growing business.
Does your business have frequent deliveries? Then it’s essential to consider local transport links, especially on main roads, and motorways. Usually, rental property prices are higher in higher density, more commercialized areas.
Seeking an out-of-town location means that you will incur a high cost. But it also has its benefits, like expanding your market reach.
If you rely on high customer foot traffic, make sure that your chosen location is also easily accessible by car, bus, or train.
Don’t forget your employees, as your business’s location can help them decide whether they’d want to work for you or not. For one, people would prefer to seek employment nearby. Second, the closer a workplace is, the less they spend on commuting or gas.
Is your competition close by? In some instances, having a competition nearby can be advantageous since customers tend to do comparison shopping.
Aside from the products you offer and their pricing, people will also consider whether your establishment is clean. As people from Planet Maids Cleaning Services NYC would often tell, a business that is kept clean and tidy creates a positive first impression.
Depending on the nature of your business, you might choose its location based on industrial clusters.
Is there an economic zone in your state or city? If yes, then consider whether your business can be a good fit. Otherwise, check where most businesses like yours are located.
If you are starting a resort, it would only make sense that your locating should be by the sea. But if you are into business process outsourcing, renting a temporary office in the central business district is suitable.
For the majority of retail businesses, foot traffic is significant. You don’t want to be in a place where shoppers are unlikely to see your products and what you have to offer. Moreover, even the best retail areas out there still have dead spots.
In contrast, if your business needs confidentiality, you don’t want to be situated in a place that receives high traffic. Ensure that you regularly monitor the foot traffic of a prospective location. Do it at different times of the day if you can.
This ensures that as many people notice your business as possible, your business will be seen. It can also help you time your supply delivery.
The location you pick should also be legally acceptable in whatever you’re planning to do there. Although a particular area might be good for business, if it isn’t zoned with what you’re planning to do, then you might end up in trouble.
You should never sign a lease if you’re not sure that your business will be permitted in that area. Usually, your city’s planning, and zoning board will determine which activities are allowed in a given location.
If the zoning board encounters a problem with your business activities and won’t be willing to accommodate you, you’ll have to look for other alternatives.
The location you choose may also increase the odds of being affected by a crime. This, in turn, affects your building insurance premiums and the additional security measures that you’ll need. However, knowing the crime rate in a particular area or location is critical in your decision-making process.
Here’s the thing: Finding the perfect location for your business has no formula.
Even if they are in a far-flung area, some businesses thrive because of the quality of their products, customer service, and marketing efforts. Some succeed because their business location gets the most eyeballs and foot traffic.
Whatever you decide, make sure you consider the factors listed in this post. That way, you can find a suitable place where you can set up shop.